Economy

The narrow victory of the leave side in the Brexit referendum demands a profound rethinking of the liberal globalization agenda.

At one, highly disturbing level, the majority for leave was a clear victory for the nativist, often overtly racist, populist right, and a clear defeat for the economic and political elites who overwhelmingly backed the remain side. As widely noted, this underlines the lack of broad popular support for deep economic and political integration which seems to be increasingly pervasive in both Europe and the United States.

When the federal and provincial finance ministers meet on June 20-21, they will have to decide whether or not to enhance the Canada Pension Plan (CPP) as promised by the Liberals in the last federal election. This will require the support of at least seven provinces with a combined two-thirds of the population and, effectively, a broad public consensus.

In that context, it is encouraging that the leading business organizations of all provinces but Alberta endorsed a modest expansion of the CPP in a letter sent to finance ministers on June 1.

The newly elected Progressive Conservative government in Manitoba has moved quickly to cement its anti-worker bona fides with the radical right-wing by making it more difficult for non-union workers to join a union, and by opening up bidding on large scale public construction projects to non-union companies. Changes in these areas were announced in the Pallister government’s Speech from the Throne on May 16.

Under the current system in Manitoba, a union can be automatically certified by the Labour Board if 65% of the workers in a proposed bargaining unit indicate their support by signing membership cards. As in other jurisdictions with a “card check” system, signed membership cards are subject to independent scrutiny.

It is now often said, with reason, that the environment and the economy are not in conflict. But it is even more true to say that seriously addressing the crisis of global climate change could revive a moribund global economy.

The World Economic Outlook (WEO) released by the International Monetary Fund in April of this year once again forecast very slow growth, and argued that economic stagnation is likely to be self-sustaining. This is due to very low levels of business investment, combined with high levels of household and public debt which constrain household and government spending.

When Christy Clark’s government released its budget in February, many advocates were hoping for real action on soaring housing costs. British Columbia’s economy is growing and investments in affordable housing in this budget – for the last full fiscal year before going to the polls in 2017 – had the potential to address the severe crisis many British Columbians are facing.

In the midst of the catastrophic fires that have devastated homes and livelihoods in the city of Fort McMurray, the Alberta government has declared a state of emergency. All focus is now on ensuring the safety of Albertans in this time of need.

Inequality is a major theme of current research in economics throughout the world. The now-famous Capital by Thomas Piketty released in English in 2014 is a case in point. It is also a major focal point in Canada, as illustrated by the bookIncome Inequality: The Canadian Story published recently by the Institute for Research on Public Policy and in the ongoing work of the Broadbent Institute and other groups.

The Liberal election platform promised to “make the Parliamentary Budget Officer (PBO) truly independent” of the government and to make sure that the office is properly funded. The platform also promised to make government accounting “consistent and clear.”

It was, then, a bit surprising that the PBO had to make a formal request for information normally provided in the federal budge, and was forced to provide its own estimates for the missing numbers in its report to Parliament on April 6. The Department of Finance finally released the requested information only on April 8, more than two weeks after the budget was delivered in the House of Commons (on March 22nd.)

Recent events have triggered an important discussion on the Left’s approach to climate change policy. The Leap Manifesto is one expression of the desire to transition to a carbon neutral economy while creating a more just and “caring” society.